B08 Metal Ore Mining

South32 cuts its debts further

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Original article by Paul Garvey
The Australian – Page: 18 : 22-Jan-16

South32’s net debt fell to $US115m in the December 2015 quarter, after it repaid $US81 million worth of debt during the period. The BHP Billiton spin-off’s debt had exceeded $US400m at the start of 2015-16, and Paul McTaggart of Credit Suisse forecasts that it will have no debt at the end of the financial year. Meanwhile, South32 has reported that its metallurgical coal output fell by 41 per cent during the second quarter, while manganese production was 37 per cent lower.

CORPORATES
SOUTH32 LIMITED – ASX S32, BHP BILLITON LIMITED – ASX BHP, CREDIT SUISSE (AUSTRALIA) LIMITED

Gender equality one commodity avoiding the rout

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Original article by Barry FitzGerald
The Australian – Page: 17 : 21-Jan-16

BHP Billiton’s vice-president of strategy and performance, Laura Tyler, says there has been a significant change in the mining sector’s attitude toward women in the industry since she began her career. CEO Andrew Mackenzie has implemented initiatives aimed at increasing gender diversity within BHP, where the proportion of senior positions that are held by women has increased from eight per cent to 17 per cent over the last five years.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED – ASX S32

BHP’s biggest question is its $US6.6b payout

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 & 23 : 21-Jan-16

Iron ore was the only one of BHP Billiton’s "four pillars" to post an increase in production during the six months to December 2015. The resources giant expects to achieve its 2015-16 production guidance for coal, copper and petroleum, although iron ore output is likely to be lower than forecast as a result of the Samarco disaster in Brazil. Meanwhile, BHP’s progressive dividend policy is expected to come under scrutiny again, and UBS forecasts that its interim dividend will be slashed by 50 per cent to $A0.31 per share.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, SHAW AND PARTNERS LIMITED, MACQUARIE BANK LIMITED – ASX MBL, SAMARCO MINERACAO SA, RIO TINTO LIMITED – ASX RIO

AWU sools watchdog on to Palmer Nickel

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Original article by Sarah Elks, Jared Owens, Rosie Lewis
The Australian – Page: 6 : 20-Jan-16

The Australian Securities & Investments Commission has been asked to investigate Queensland Nickel for potential breaches of the Corporations Act. Australian Workers’ Union state secretary Ben Swan has raised concern about the company’s donations to the political party of Clive Palmer, who is Queensland Nickel’s only shareholder. Swan also says Palmer may have been a "shadow director", despite resigning as a Queensland Nickel director in early 2015.

CORPORATES
QUEENSLAND NICKEL PTY LTD, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AURIZON HOLDINGS LIMITED – ASX AZJ, QUEENSLAND. DEPT OF THE PREMIER AND CABINET, NATIONAL TEXTILES LIMITED, ONE.TEL LIMITED, UNIVERSITY OF SYDNEY, PALMER UNITED PARTY

Rio eases off its iron ore expansion

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Original article by Matt Chambers
The Australian – Page: 18 : 20-Jan-16

Rio Tinto expects to produce 350 million tonnes of iron ore in Western Australia and Canada in 2016, which is slightly below market forecasts of 355 million tonnes. Total production was 327 million tonnes in 2015, with the Pilbara region accounting for 310 million tonnes. However, Rio had initially flagged Pilbara output of 330 million tonnes. The latest guidance suggests that Rio Tinto may not achieve its Pilbara production target of 335 million tonnes in 2016.

CORPORATES
RIO TINTO LIMITED – ASX RIO, MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, CITIGROUP PTY LTD, IRON ORE COMPANY OF CANADA, DEUTSCHE BANK AG

Aurizon hit by Queensland Nickel collapse

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Original article by Mark Ludlow, |Primrose Riordan
The Australian Financial Review – Page: 3 : 19-Jan-16

Faced with financial problems, Clive Palmer’s Queensland Nickel has opted for voluntary administration, with FTI Consulting appointed as administrators. Queensland Nickel MD Clive Mensink said on 18 January 2016 that the company has the potential to return to profitability. It was therefore "business as usual." Queensland Nickel”s creditors include Aurizon, Powerlink, Ixom and the Port of Townsville.

CORPORATES
QUEENSLAND NICKEL PTY LTD, FTI CONSULTING PTY LTD, AURIZON HOLDINGS LIMITED – ASX AZJ, POWERLINK QUEENSLAND, IXOM AUSTRALIA, PORT OF TOWNSVILLE, PALMER UNITED PARTY, STANWELL CORPORATION LIMITED, AUSTRALIA. DEPT OF THE TREASURY

Resource raisings hit the pits

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Original article by Paul Garvey
The Australian – Page: 18 : 18-Jan-16

New figures show that Australian resources groups raised just $A2.41bn in new equity during 2015, which is the lowest level since 2005. There was a sharp decline in IPO activity in particular in the resources sector, while iron ore hopeful Waratah Resources is the latest company to shift its focus to the technology sector. Businessman Nathan Tinkler notes that investors are reluctant to support equity raisings in the resources sector at present.

CORPORATES
WARATAH RESOURCES LIMITED – ASX WGO, AUSTRALIAN PACIFIC COAL LIMITED – ASX AQC, BLOOMBERG LP, PENGANA CAPITAL LIMITED, BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD

The new normal: Rio freezes salaries and travel

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Original article by Paul Garvey
The Australian – Page: 17 : 15-Jan-16

The challenging conditions in the resource sector have prompted Rio Tinto to implement new cost-cutting measures, which include putting salary increases on hold. All staff will be subject to the salary freeze, including CEO Sam Walsh, who has told staff that a rebound in commodity prices is unlikely for some time. Rio Tinto will also seek to reduce its travel expenses, while it may reduce its expenditure on consultants and contractors.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Citi chooses BHP as preferred big miner

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Original article by Peter Ker
The Australian Financial Review – Page: 21 : 15-Jan-16

Citigroup is upbeat about BHP Billiton, issuing a "buy" rating on the stock and a share price target of $A18. The investment bank has also indicated that it now prefers BHP over rival mining giant Rio Tinto, citing factors such as BHP’s significant underperformance during the last six months and the outlook for iron ore. Citigroup expects the price of the steel input to average $US35 per tonne over the next several years.

CORPORATES
BHP BILLITON LIMITED – ASX BHP,{SPAC}RIO TINTO LIMITED – ASX RIO,{SPAC}CITIGROUP PTY LTD,{SPAC}FORTESCUE METALS GROUP LIMITED – ASX FMG,{SPAC}SANTOS LIMITED – ASX STO,{SPAC}WOODSIDE PETROLEUM LIMITED – ASX WPL,{SPAC}BEACH ENERGY LIMITED – ASX BPT

Iron ore price slide causes more delays for Sundance

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Original article by Tess Ingram
The Australian Financial Review – Page: 23 : 14-Jan-16

China Gezhouba Group has been forced to delay signing a contract to develop transport infrastructure for Sundance Resources’ iron ore project in Africa. The state-owned group has sought to postpone signing the agreement with the Cameroon Government due to the latter’s financing issues in the wake of the downturn in the iron ore price. China Gezhouba Group will build port and rail facilities for the Mbalam-Nabeba project.

CORPORATES
SUNDANCE RESOURCES LIMITED – ASX SDL, CHINA GEZHOUBA GROUP COMPANY LIMITED, ANSHAN IRON AND STEEL COMPANY